PIGGING--A Good Year For Developments & Operational Success.
Pipeline & Gas Journal › Vol. 228 Nbr. 8, August 2001
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Summary
Equipment for testing and clearing gas and oil pipelines
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PIGGING--A Good Year For Developments & Operational Success.
Everybody believed in 2000 that high oil prices would lead to a boom in our industry, but nothing of the sort happened. During the year, oil companies continued to consolidate and introduce further efficiencies and cost reductions. Contractors were squeezed relentlessly. The high price of oil ($25-$35 per barrel) enabled oil companies to rebuild their balance sheets and fund their merger and acquisition activities. Although significant earnings and cash surpluses are being reported and expenditure is expected to build up in the coming year, operators will not want to be caught again and thus will remain prudent. Their longer-term investments will be based at around $13-$15 per barrel, not at the current levels of around $25 per barrel.
However, it is an inescapable fact that while demand exceeds supply, exploration and development activity must increase over the coming years to bring supply and demand into balance and oil prices down to a non-inflationary price. In view of this, we are seeing a major recovery as many new projects are moving from the drawing board to EPC contractors. So there is a higher level of orders for pig traps, signalers and closures as new pipelines projects are started. Pigs will follow once the lines are built and ready for commissioning. Although competition will remain fierce, a much higher level of activity is now forecast for the immediate future. A significant number of pigging developments have recently matured--to the benefit of pipeline operators worldwide. Here, we touch on some of those that are influencing cost-effectiveness and efficiency. EDG has introduced a revolutionary new pig launcher/trap device claimed to save time and increase reliability of scheduled maintenance. They integrate and automate three essential requirements - swabbing, batching and smart pigging functions and reduce dramatically the number of times the launcher has to be opened. Both worker and environmental safety are improved because the accidental release of hydrogen sulfide is lessened. A further benefit of the new equipment is that it can be operated from shore. Now successfully used offshore, EDG ...See the full content of this document
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